FlixMobility has acquired U.S. long-distance bus provider Greyhound for approximately $46 million.
First Group, the Scotland-based owner of Greyhound, has agreed terms with FlixMobility-controlled Neptune Holding, which includes a further deferred consideration of $32 million.
Further terms of the deal provided by First Group reveal a total deal value of $172 million which includes $108 million from COVID economic relief grant and debt of $14 million.
FlixMobility says the acquisition is an important step in its “vision to provide easy-to-use, affordable, and environmentally friendly travel for consumers.”
The Germany-based mobility technology company was recently valued at $3 billion after raising $650 million in June this year.
At the time FlixMobility said the funds would go towards expanding its FlixBus in the U.S. as well as building its FlixBus and FlixTrain network in Europe.
A statement on the acquisition says the combination of Flixmobility’s technology with Greyhound’s “iconic nationwide presence and experience” will better serve the needs of intercity bus travelers.
The company says its FlixBus Global network serves more than 2,500 destinations in 36 countries outside the U.S. while Greyhound connects about 2,400 destinations across North America and carries about 16 million passengers annually.
André Schwämmlein, co-founder and CEO, FlixMobility, says: “Consumers across North America are increasingly seeking affordable, comfortable, smart and sustainable mobility solutions. A compelling offering will draw significantly more travelers away from private cars to shared intercity bus mobility.”
Jochen Engert, co-founder and CEO, FlixBus, adds: “The continuous expansion of our services through partnerships and acquisitions has always been an integral part of our growth strategy to build our global presence. The acquisition of Greyhound is a major step forward in the US.
"The FlixBus and Greyhound teams share a common vision to make smart, affordable and sustainable mobility accessible to all."
* Check this interview with Engert, recorded for the How I Got Here podcast in October 2020.
How I Got Here, episode 45 - Jochen Engert